Apr 01, 2016
From Financial Reporting View
This Podcast features professionals from KPMG's Department of Professional Practice discussing ASU 2016-06, Contingent Put and Call Options in Debt Instruments (a consensus of the FASB Emerging Issues Task Force), which clarifies that determining whether the economic characteristics of a put or call are clearly and closely related to its debt host requires only an assessment of the four-step decision sequence outlined in FASB ASC paragraph 815-15-25-24. Additionally, entities are not required to separately assess whether the contingency itself is clearly and closely related.
For additional information on ASU 2016-06, read our Defining Issues 15-53.